The Star Entertainment Group, one of Australia’s leading casino operators, has reported a $74 million loss in net profits for the first half of its financial year.
The group cited a number of issues that contributed to these losses, including property shutdowns due to the pandemic, operating restrictions when the properties were allowed to open, and border closures which severely limited the number of visitors.
Star Group is already troubled as it’s under investigation by AUSTRAC for “potential serious non-compliance” and waiting for the results of an independent inquiry by the Liquor and Gaming Authority. The report is expected to be published in June this year.
Key findings of the half year results report as follows [results in Australian Dollars]:
- Normalized revenue dropped 22% year on year to $580 million.
- Net Profits fell 215% to $74 million.
- EBIDTA declined 87% to $29 million.
- Revenue at Star Casino Sydney dropped 39% year on year to $239 million.
- Revenue at its Brisbane property dropped 11% year on year to $161 million.
- Revenue at its Gold Coast property climbed 5% to $180 million.
“Extraordinary” Challenges
The chair of Star, John O’Neill commented on the report and said that the group had “continued executing its strategy well in the context of the extraordinary COVID-19 related challenges.”
“The Star remains committed to maintaining a balance sheet that positions the group for the post COVID-19 recovery,” he added.